EXHIBIT 99.1
[LOGO] CENDANT
CENDANT REPORTS RECORD SECOND QUARTER 2001 RESULTS
Adjusted EPS of $0.30 Exceeds Projection by $0.03;
Revenue Up 114% and Adjusted EBITDA Increases 36% vs. Second Quarter 2000
Adjusted EPS $0.30 in 2001 vs. $0.26 in 2000
Reported EPS $0.27 in 2001 vs. $0.24 in 2000
Company Again Raises Projection for Full Year 2001
NEW YORK, NY, JULY 18, 2001 - Cendant Corporation (NYSE: CD) today reported
record second quarter 2001 results and projected its outlook for the remainder
of 2001. Second quarter 2001 includes $0.03 per share of interest expense not
included in second quarter 2000 as the Company began to recognize interest
expense in third quarter 2000 as required by the settlement agreement for the
principal common stock class action litigation. Without this incremental
interest expense, second quarter 2001 adjusted earnings per share increased 27%.
"We are pleased that we have once again exceeded our projections and reported
record results this quarter, and we remain optimistic about the outlook for the
remainder of 2001. Strong contributions from many of our businesses and the
addition of the operations of Avis and Fairfield Resorts drove the increase in
our second quarter results," said Cendant Chairman, President and Chief
Executive Officer, Henry R. Silverman. "Similar to the performance of HFS during
its five years as a public company, we anticipate that we will continue to have
record quarters going forward in 2002, which should result in significant
earnings growth in 2002."
"We are particularly pleased that our traditional businesses, which we define as
excluding Avis, Fairfield Resorts and Membership, met or exceeded our stated
growth targets demonstrating the operating leverage of our fee-for-service
business model and that our organic growth remains healthy," concluded
Silverman.
The Company announced that second quarter 2001 adjusted earnings per share
("adjusted EPS" excludes non-recurring or unusual items and the effect of an
equity ownership of Homestore.com) of $0.30 exceeded prior second quarter 2001
projections of $0.27. The Company also announced that it has raised its
projection for the second half of the year by $0.01; it now projects third
quarter 2001 adjusted EPS to be $0.32 and fourth quarter 2001 adjusted EPS to be
$0.24 and has increased its projection for full year 2001 to $1.07. The Company
has previously forecast that adjusted EPS for full year 2002 will be $1.35 to
$1.40.
SECOND QUARTER ACTIVITIES
Consistent with its new growth agenda, the Company recently announced several
events:
o The pending acquisition of Galileo International for approximately
$2.9 billion. This transaction is expected to close in the third
quarter of this year and is expected to increase adjusted EPS in
2002 by $0.10 to $0.14.
o An agreement to outsource and license its individual membership and
loyalty businesses to Trilegiant Corporation. Adjusted EPS increased
by $0.02 in first quarter 2001 and is expected to increase by $0.06
to $0.08 in 2002, as a result of the transaction.
o The change in accounting for goodwill amortization recently issued
by the Financial Accounting Standards Board is expected to increase
2002 earnings per share by $0.10 to $0.12.
o The acquisition of Fairfield Resorts, the largest independent
vacation ownership company in the United States, in April 2001 for
approximately $690 million. This transaction was immediately
accretive to earnings.
o The issuance of zero coupon zero yield convertible senior notes
raising $1 billion in May 2001.
SECOND QUARTER SEGMENT RESULTS
The underlying discussion of operating results focuses on Adjusted EBITDA, which
is defined as earnings before non-operating interest, income taxes, non-vehicle
depreciation and amortization, minority interest and equity in Homestore.com,
adjusted to exclude certain items which are of a non-recurring or unusual nature
and are not measured in assessing segment performance or are not segment
specific. Such discussion is the most informative representation of how
management evaluates performance and allocates resources.
The Company has the following reportable operating segments: Real Estate
Services (consisting of the Company's three real estate brands, mortgage and
relocation services); Hospitality (consisting of the Company's nine lodging
brands, timeshare exchange and interval sales, travel agency and cottage
rental); Vehicle Services (consisting of car rental, vehicle management services
and car park facility services); and Financial Services (consisting of
individual membership, insurance related services, financial services
enhancement products and tax preparation services). Additionally, Corporate and
Other includes unallocated corporate overhead and the operating results of
certain other non-strategic business units, some of which have been disposed.
(See Table 2 for second quarter 2001 and 2000 Revenues and Adjusted EBITDA by
Segment and Table 4 for second quarter 2001 and 2000 Segment Revenue Driver
Analysis.)
REAL ESTATE SERVICES
2001 2000 % CHANGE
- --------------------------------------------------------------------------------
REVENUES $474 $377 26%
- --------------------------------------------------------------------------------
EBITDA $231 $193 20%
- --------------------------------------------------------------------------------
The increase in operating results was primarily driven by a significant increase
in mortgage loan production. Service based fees from relocation activities and
franchise fees from our real estate franchise brands also contributed to the
increase in revenues and EBITDA. Royalties from real estate franchising
increased due to growth in our franchise systems despite only moderate
industry-wide growth nationwide and unfavorable industry conditions in
California. Second quarter 2000 included a $10 million gain on the sale of a
portion of our preferred stock investment in NRT. Excluding this gain, EBITDA
increased 26%.
2
HOSPITALITY
2001 2000 % CHANGE
- --------------------------------------------------------------------------------
REVENUES $473 $257 84%
- --------------------------------------------------------------------------------
EBITDA $159 $103 54%
- --------------------------------------------------------------------------------
Revenues and EBITDA increased primarily from the acquisition of Fairfield
Resorts in 2001 and growth in our timeshare operations. Timeshare revenues grew
due to an increase in members and the number of exchange transactions.
VEHICLE SERVICES
2001 2000 % CHANGE
- --------------------------------------------------------------------------------
REVENUES $1,112 $135 N/M
- --------------------------------------------------------------------------------
EBITDA $ 142 $ 67 N/M
- --------------------------------------------------------------------------------
N/M = not meaningful
In March 2001, we acquired the remaining 82% of outstanding common shares of
Avis Group Holdings that we did not already own. Prior to the acquisition,
revenues and EBITDA principally consisted of Avis royalties and earnings from
our equity investment in Avis (neither of which exist subsequent to our
acquisition) and the operations of National Car Parks.
FINANCIAL SERVICES
2001 2000 % CHANGE
- --------------------------------------------------------------------------------
REVENUES $332 $321 3%
- --------------------------------------------------------------------------------
EBITDA $ 70 $ 83 (16%)
- --------------------------------------------------------------------------------
Increased revenues reflect contributions from the individual membership
businesses and Jackson Hewitt. Increased revenues from the individual membership
businesses were supported by a favorable mix of products and programs with
marketing partners and the integration of Netmarket Group, an online membership
business. The decrease in EBITDA is due to a reduction in membership expirations
in second quarter 2001 compared with 2000 (revenue is recognized upon expiration
of memberships) and increased marketing in the individual membership business to
solicit new members.
SECOND QUARTER BALANCE SHEET AND OTHER ITEMS
o As of June 30, 2001, we had approximately $1.9 billion of cash and cash
equivalents and $5.2 billion of debt and minority interest. In May 2001,
we issued zero coupon zero yield convertible senior notes for gross
proceeds of $1 billion.
o As of June 30, 2001, the net debt to total capital ratio was 37%. The
ratio of adjusted EBITDA to net interest expense (non-vehicle) was 9.5 to
1 in second quarter 2001.
o In second quarter 2001, we paid $250 million to a settlement trust,
reducing the net outstanding principal obligation associated with the
principal common stock class action litigation settlement at June 30, 2001
to $2 billion.
o Weighted average common shares outstanding increased in second quarter
2001 primarily from the issuance of 61 million shares in connection with
the retirement of $1.7 billion of Feline PRIDES and the sale of 46 million
shares in February 2001.
3
SECOND QUARTER EPS ITEMS
Reported EPS for CD common stock includes Cendant Group operations and a
retained interest in Move.com Group. Reported EPS for CD common stock was $0.27
in second quarter 2001 and $0.24 in second quarter 2000. The following are the
significant items reflected in reported results that are considered to be of an
unusual or non-recurring nature for purposes of deriving adjusted EPS:
SECOND QUARTER 2001
o A net loss of $18 million after tax related to Cendant's proportionate
ownership in Homestore.com. Cendant Group's retained interest in the net
loss was $17 million or $0.02 per share.
o A charge of $9 million ($5 million or $0.01 per share after tax) for
litigation settlement and related costs.
SECOND QUARTER 2000
o A net loss of $17 million after tax or $0.02 per share related to
move.com's operating results.
THIRD QUARTER 2001 OUTLOOK
The Company announced the following financial projections for third quarter
2001, excluding any impact of the pending Galileo acquisition:
o Adjusted EBITDA is projected to be between $620 million and $635
million compared with $510 million, excluding move.com, in 2000.
o Depreciation and amortization (non-vehicle) is projected to be
between $125 million and $130 million compared with $87 million in
2000.
o Net interest expense (non-vehicle) is projected to be between $55
million and $60 million compared with $38 million in 2000. The
increase is principally due to the Company's litigation settlement
obligation. The Company expects year over year interest expense
comparisons to improve after August 15, 2001 as it discharges the
liability and anniversaries the expense recorded in the prior year.
o The Company's year-to-date tax rate, exclusive of non-recurring or
unusual items, is 34.4% compared with 34.0% in 2000. The Company is
currently evaluating domestic and international tax opportunities
and is seeking to reduce its effective tax rate below last year's
level.
o Minority interest is projected to be approximately $4 million
compared with $23 million in 2000. The reduction is primarily a
result of the retirement of the Feline PRIDES in February 2001.
o Weighted average shares outstanding are projected to be between 960
million and 975 million compared with 759 million in 2000. The
increase in the average share balance is primarily the result of the
issuance of 61 million shares of CD common stock in connection with
the retirement of the Feline PRIDES, the issuance of 46 million
shares of CD common stock in February 2001 and the anticipated
inclusion in the average share calculation of 49 million shares
underlying the zero coupon convertible notes issued in February
2001.
4
INVESTOR CONFERENCE CALL
Cendant will host a conference call to discuss second quarter results on
Thursday, July 19, 2001 at 11:00 a.m. Eastern Time. Investors may access this
call live at WWW.CENDANT.COM or dial in to 913-981-5571. A web replay will be
available at www.Cendant.com following the call. A telephone replay will be
available from 2:00 p.m. Eastern Time on July 19, 2001 until 8:00 p.m. on July
23 at 719-457-0820, access code: 775683.
STATEMENTS ABOUT FUTURE RESULTS MADE IN THIS RELEASE CONSTITUTE FORWARD-LOOKING
STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995. THESE STATEMENTS ARE BASED ON CURRENT EXPECTATIONS AND THE CURRENT
ECONOMIC ENVIRONMENT. THE COMPANY CAUTIONS THAT THESE STATEMENTS ARE NOT
GUARANTEES OF FUTURE PERFORMANCE. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM
THOSE EXPRESSED OR IMPLIED IN THE FORWARD-LOOKING STATEMENTS. IMPORTANT
ASSUMPTIONS AND OTHER IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO
DIFFER MATERIALLY FROM THOSE IN THE FORWARD-LOOKING STATEMENTS ARE SPECIFIED IN
CENDANT'S FORM 10-K/A AND GALILEO INTERNATIONAL, INC.'S FORM 10-K FOR THE YEAR
ENDED DECEMBER 31, 2000, INCLUDING THE TIMING OF THE CONSUMMATION OF THE GALILEO
ACQUISITION WHICH IS EXPECTED TO CLOSE IN THE THIRD QUARTER OF 2001.
SUCH FORWARD-LOOKING STATEMENTS INCLUDE PROJECTIONS. SUCH PROJECTIONS WERE NOT
PREPARED IN ACCORDANCE WITH PUBLISHED GUIDELINES OF THE AMERICAN INSTITUTE OF
CERTIFIED PUBLIC ACCOUNTANTS OR THE SEC REGARDING PROJECTIONS AND FORECASTS, NOR
HAVE SUCH PROJECTIONS BEEN AUDITED, EXAMINED OR OTHERWISE REVIEWED BY
INDEPENDENT AUDITORS OF CENDANT OR ITS AFFILIATES. IN ADDITION, SUCH PROJECTIONS
ARE BASED UPON MANY ESTIMATES AND ARE INHERENTLY SUBJECT TO SIGNIFICANT ECONOMIC
AND COMPETITIVE UNCERTAINTIES AND CONTINGENCIES, MANY OF WHICH ARE BEYOND THE
CONTROL OF MANAGEMENT OF CENDANT AND ITS AFFILIATES. ACCORDINGLY, ACTUAL RESULTS
MAY BE MATERIALLY HIGHER OR LOWER THAN THOSE PROJECTED. THE INCLUSION OF SUCH
PROJECTIONS HEREIN SHOULD NOT BE REGARDED AS A REPRESENTATION BY CENDANT OR ITS
AFFILIATES THAT THE PROJECTIONS WILL PROVE TO BE CORRECT.
Cendant Corporation is primarily a provider of travel and residential real
estate services. With approximately 57,000 employees, New York City-based
Cendant provides these services to businesses and consumers in over 100
countries.
More information about Cendant, its companies, brands and current SEC filings
may be obtained by visiting the Company's Web site at WWW.CENDANT.COM or by
calling 877-4INFO-CD (877-446-3623).
MEDIA CONTACT: INVESTOR CONTACTS:
- ------------- -----------------
Elliot Bloom Denise Gillen Sam Levenson
212-413-1832 212-413-1833 212-413-1834
*****
Tables Follow
5
TABLE 1
CENDANT CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(IN MILLIONS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------ -------------------
2001 2000 2001 2000
------- ------- --------- --------
Revenues
Membership and service fees, net $ 1,355 $ 1,044 $ 2,431 $ 2,040
Vehicle-related 1,035 72 1,433 141
Other 13 21 25 84
------- ------- ------- -------
Net revenues 2,403 1,137 3,889 2,265
------- ------- ------- -------
EXPENSES
Operating 788 361 1,239 728
Vehicle depreciation, lease charges and interest, net 545 - 725 -
Marketing and reservation 291 228 541 444
General and administrative 192 144 354 277
Non-vehicle depreciation and amortization 121 86 222 171
Other charges (credits):
Restructuring and other unusual charges - - 185 106
Litigation settlement and related costs 9 5 19 (33)
Merger-related costs - - 8 -
Non-vehicle interest, net 61 22 122 47
------- ------- ------- -------
Total expenses 2,007 846 3,415 1,740
------- ------- ------- -------
Net gain (loss) on dispositions of businesses - 4 435 (10)
------- ------- ------- -------
INCOME BEFORE INCOME TAXES, MINORITY INTEREST AND EQUITY IN HOMESTORE.COM 396 295 909 515
Provision for income taxes 131 98 336 176
Minority interest, net of tax 5 22 18 38
Losses related to equity in Homestore.com, net of tax 18 - 36 -
------- ------- ------- -------
INCOME BEFORE EXTRAORDINARY LOSS AND CUMULATIVE EFFECT
OF ACCOUNTING CHANGE 242 175 519 301
Extraordinary loss, net of tax - - - (2)
------- ------- ------- -------
INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE 242 175 519 299
Cumulative effect of accounting change, net of tax - - (38) (56)
------- ------- ------- -------
NET INCOME $ 242 $ 175 $ 481 $ 243
======= ======= ======= =======
CD COMMON STOCK INCOME PER SHARE
BASIC
Income before extraordinary loss and cumulative effect
of accounting change $ 0.29 $ 0.25 $ 0.61 $ 0.42
Net income $ 0.29 $ 0.25 $ 0.57 $ 0.34
DILUTED
Income before extraordinary loss and cumulative effect
of accounting change $ 0.27 $ 0.24 $ 0.58 $ 0.40
Net income $ 0.27 $ 0.24 $ 0.54 $ 0.33
WEIGHTED AVERAGE SHARES
Basic 851 722 820 720
Diluted 905 762 868 765
MOVE.COM COMMON STOCK INCOME (LOSS) PER SHARE
BASIC
Income (loss) before extraordinary loss and cumulative effect
of accounting change $ (0.63) $ (0.67) $ 9.94 $ (0.67)
Net income (loss) $ (0.63) $ (0.67) $ 9.87 $ (0.67)
DILUTED
Income (loss) before extraordinary loss and cumulative effect
of accounting change $ (0.63) $ (0.67) $ 9.81 $ (0.67)
Net income (loss) $ (0.63) $ (0.67) $ 9.74 $ (0.67)
WEIGHTED AVERAGE SHARES
Basic 1 4 2 4
Diluted 1 4 2 4
6
TABLE 2
CENDANT CORPORATION AND SUBSIDIARIES
REVENUES AND ADJUSTED EBITDA BY SEGMENT
(DOLLARS IN MILLIONS)
THREE MONTHS ENDED JUNE 30,
---------------------------
REVENUES ADJUSTED EBITDA (A)
------------------------------------ -----------------------------------------
2001 2000 % CHANGE 2001 2000 % CHANGE
------------------------------------ -----------------------------------------
Real Estate Services $ 474 $ 377 26% $ 231 $ 193 20%
Hospitality 473 257 84% 159 103 54%
Vehicle Services 1,112 135 * 142 67 *
Financial Services 332 321 3% 70 83 (16%)
------ ------ ------ ------
Total Reportable Segments 2,391 1,090 602 446
Corporate and Other (B) 12 47 * (15) (C) (42) (C) *
------ ------ ------ ------
Total Company $2,403 $1,137 $ 587 $ 404
====== ====== ====== ======
SIX MONTHS ENDED JUNE 30,
-------------------------
REVENUES ADJUSTED EBITDA (A)
------------------------------------ -----------------------------------------
2001 2000 % CHANGE 2001 2000 (G) % CHANGE
------------------------------------ -----------------------------------------
Real Estate Services $ 813 $ 666 22% $ 363 (D) $ 308 18%
Hospitality 737 499 48% 263 195 (H) 35%
Vehicle Services 1,566 272 * 234 (E) 139 *
Financial Services 722 702 3% 201 216 (7%)
------ ------ ------ ------
Total Reportable Segments 3,838 2,139 1,061 858
Corporate and Other (B) 51 126 * (31)(F) (42) (I) *
------ ------ ------ ------
Total Company $3,889 $2,265 $1,030 $ 816
====== ====== ====== ======
- ---------
* Not meaningful.
(A) Defined as earnings before non-operating interest, income taxes,
non-vehicle depreciation and amortization, minority interest and equity in
Homestore.com, adjusted to exclude certain items which are of a
non-recurring or unusual nature and not measured in assessing segment
performance or are not segment specific.
(B) Includes Move.com Group revenues and Adjusted EBITDA losses of $15 million
and $29 million, respectively, for the three months ended June 30, 2000.
Includes Move.com Group revenues of $10 million and $26 million and
Move.com Group Adjusted EBITDA losses of $9 million and $55 million for
the six months ended June 30, 2001 and 2000, respectively.
(C) Excludes a charge of $9 million and $5 million for litigation settlement
and related costs for the three months ended June 30, 2001 and 2000,
respectively. The 2000 charge was partially offset by $4 million of gains
related to the dispositions of businesses.
(D) Excludes a charge of $95 million to fund an irrevocable contribution to an
independent technology trust responsible for providing technology
initiatives for the benefit of current and future franchisees at Century
21, Coldwell Banker and ERA.
(E) Excludes a charge of $4 million related to the acquisition and integration
of Avis Group Holdings, Inc ("Avis Group").
(F) Excludes (i) a net gain of $435 million related to the dispositions of
businesses and (ii) a credit of $14 million to reflect an adjustment to
the PRIDES class action litigation settlement charge recorded in the
fourth quarter of 1998 primarily for Rights that expired unexercised. Such
amounts were partially offset by charges of (i) $85 million incurred in
connection with the creation of Travel Portal, Inc., a company that was
created to pursue the development of an online travel business for the
benefit of certain current and future franchisees, (ii) $33 million for
litigation settlement and related costs, (iii) $7 million related to a
non-cash contribution to the Cendant Charitable Foundation and (iv) $4
million related to the acquisition and integration of Avis Group.
(G) Excludes a charge of $106 million in connection with restructuring and
other initiatives ($2 million, $63 million, $31 million and $10 million of
charges were recorded within Real Estate Services, Hospitality, Financial
Services and Corporate and Other, respectively).
(H) Excludes $4 million of losses related to the dispositions of businesses.
(I) Excludes a non-cash credit of $41 million in connection with a change to
the original estimate of the number of Rights to be issued in connection
with the PRIDES settlement resulting from unclaimed and uncontested
Rights. Such credit was partially offset by (i) $6 million of losses
related to the dispositions of businesses and (ii) $8 million of
litigation settlement and related costs.
7
TABLE 3
CENDANT CORPORATION AND SUBSIDIARIES
2000 REVENUES AND ADJUSTED EBITDA BY SEGMENT (A)
(DOLLARS IN MILLIONS)
REVENUES
-----------------------------------------------------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year
------------- --------------- -------------- --------------- --------------
Real Estate Services $ 289 $ 377 $ 419 $ 376 $ 1,461
Hospitality 242 257 278 236 1,013
Vehicle Services 137 135 146 150 568
Financial Services 381 321 333 345 1,380
------- ------- ------- ------- -------
Total Reportable Segments 1,049 1,090 1,176 1,107 4,422
Corporate and Other (B) 79 47 49 62 237
------- ------- ------- ------- -------
Total Company $ 1,128 $ 1,137 $ 1,225 $ 1,169 $ 4,659
======= ======= ======= ======= =======
ADJUSTED EBITDA
-----------------------------------------------------------------------------------
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year
------------- --------------- -------------- --------------- --------------
Real Estate Services $ 114 $ 193 $ 242 $ 203 $ 752
Hospitality 91 103 115 85 394
Vehicle Services 72 67 81 86 306
Financial Services 133 83 86 71 373
------- ------- ------- ------- --------
Total Reportable Segments 410 446 524 445 1,825
Corporate and Other (C) 2 (42) (34) (26) (100)
------- ------- ------- ------- --------
Total Company $ 412 $ 404 $ 490 $ 419 $ 1,725
======= ======= ======= ======= ========
- ---------
(A) During July 2001, the Company entered into a number of agreements with a
third party whereby the Company will have an ongoing interest in its
individual membership business. Previously, the Company had planned to
spin-off this business to its stockholders and therefore had treated the
results of this business as a discontinued operation. As a result of this
change in plan and the Company's ongoing involvement in this business, the
operating results of the individual membership business have been
reclassified from discontinued operations to continuing operations for all
periods presented.
(B) Includes Move.com Group revenues of $11 million, $15 million, $15 million,
$18 million and $59 million for the first, second, third and fourth
quarters and for the full year, respectively.
(C) Includes Move.com Group Adjusted EBITDA losses of $26 million, $29
million, $20 million, $19 million and $94 million for the first, second,
third and fourth quarters and for the full year, respectively.
8
TABLE 4
CENDANT CORPORATION AND SUBSIDIARIES
SEGMENT REVENUE DRIVER ANALYSIS
(REVENUE DOLLARS IN THOUSANDS)
THREE MONTHS ENDED JUNE 30,
-------------------------------------------
2001 2000 % CHANGE
----------- ------------ -------------
REAL ESTATE SERVICES SEGMENT
REAL ESTATE
Closed Sides - Domestic (000's) 512,507 503,921 2%
Average Price $ 176,200 $ 172,594 2%
Royalty and Marketing Revenue $ 150,777 $ 144,092 5%
Total Revenue $ 170,019 $ 165,683 3%
RELOCATION
Service Based Revenue (Referrals, Outsourcing, etc.) $ 77,541 $ 66,802 16%
Asset Based Revenue (Corporate and
Government Home Sale Closings and Financial Income) $ 48,735 $ 47,631 2%
Total Revenue $ 126,276 $ 114,433 10%
MORTGAGE
Production Loans Sold (millions) $ 9,920 $ 4,746 109%
Production Revenue $ 176,326 $ 73,714 139%
Average Servicing Loan Portfolio (millions) $ 86,573 $ 58,264 49%
Net Servicing Revenue (A) $ 1,742 $ 23,347 (93%)
Total Revenue $ 178,372 $ 97,241 83%
HOSPITALITY SEGMENT
LODGING
RevPar ($) $ 29.96 $ 30.33 (1%)
Weighted Average Rooms Available 513,773 501,929 2%
Royalty, Marketing and Reservation Revenue $ 105,195 $ 106,397 (1%)
Total Revenue $ 129,023 $ 129,899 (1%)
RCI
Average Subscriptions 2,695,442 2,361,957 14%
Number of Timeshare Exchanges 456,424 360,968 26%
Total Revenue $ 130,266 (B)$ 103,311 26%
FAIRFIELD RESORTS
Average Revenue per Transaction $ 12,021 $ 11,436 5%
Total Revenue $ 183,821 (C) n/a
VEHICLE SERVICES SEGMENT
CAR RENTAL
Rental Days (000's) 15,256 15,848 (4%)
Time and Mileage Revenue per Day $ 38.67 $ 39.51 (2%)
Total Revenue $ 628,894 (C) n/a
VEHICLE MANAGEMENT AND FUEL CARD SERVICES
Average Fleet (Leased) 315,771 300,679 5%
Average Number of Cards (000's) 3,616 3,179 14%
Total Revenue $ 391,392 (C) n/a
FINANCIAL SERVICES SEGMENT
Insurance/Wholesale-related Revenue $ 146,238 $ 145,386 1%
Other Revenue $ 185,776 $ 175,904 6%
Total Revenue $ 332,014 $ 321,290 3%
(A) Includes gross recurring service fees of $87 million and $56 million (net
of non-cash amortization of mortgage rights assets of $88 million and $41
million) for the three months ended June 30, 2001 and 2000, respectively.
Non-cash amortization expenses were accelerated during the three months
ended June 30, 2001 due to a higher volume of refinancing activity.
(B) Includes property management revenues of $13 million from the acquisition
of Fairfield Resorts for the three months ended June 30, 2001. Subsequent
to the acquisition, Fairfield's property management operations were
included within the RCI business structure, as RCI is our service provider
for the timeshare industry.
(C) The operations of these businesses were acquired during 2001. Accordingly,
prior period total revenues are not comparable to the current period
amounts.
9
TABLE 5
CENDANT CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN BILLIONS)
JUNE 30, 2001 DECEMBER 31, 2000
--------------- -------------------
ASSETS
Current assets
Cash and cash equivalents $ 1.9 $ 0.9
Other current assets 2.5 1.8
---------- ----------
Total current assets 4.4 2.7
Property and equipment, net 1.6 1.3
Goodwill, net 5.5 3.2
Stockholder litigation settlement trust 0.9 0.4
Other assets 5.3 4.6
---------- ----------
Total assets exclusive of assets under programs 17.7 12.2
Assets under management and mortgage programs 11.6 2.9
---------- ----------
TOTAL ASSETS $ 29.3 $ 15.1
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of long-term debt $ 0.5 $ -
Other current liabilities 3.8 2.5
---------- ----------
Total current liabilities 4.3 2.5
Long-term debt 4.4 1.9
Stockholder litigation settlement 2.9 2.9
Other noncurrent liabilities 0.6 0.4
---------- ----------
Total liabilities exclusive of liabilities under programs 12.2 7.7
Liabilities under management and mortgage programs 11.0 2.5
Mandatorily redeemable preferred securities issued by subsidiaries 0.4 2.1
Total stockholders' equity 5.7 2.8
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 29.3 $ 15.1
========== ==========
10